Saudi has sold oil in US dollars since WW2. When countries have asked to settle in the own currencies, the Saudi response has usually been to reply, "But what would we do with your currency?"

In recent years though, something critical changed: Saudi imports from China grew to $30.3 billion (while Chinese imports of Saudi oil grew to $57 billion).

When there is that much bi-lateral trade happening, it doesn't make sense to use a third country's currency such as the dollar as you lose 1% to 5% in fees when you convert it back to your own currency. In this case costs are reduced by using either Saudi riayls or Chinese yuan (CNY).

In Dec 2022, China and Saudi signed a [bilateral trade agreement](https://www.nytimes.com/2022/12/08/world/middleeast/china-saudi-arabia-agreement.html).

Details are opaque, but the Saudis appear to have agreed for part of the settlement to be in CNY.

It will work as follows: sell oil in CNY, spend CNY received on Chinese goods. Settle any net amount in physical gold priced at a floating rate in CNY (that preserves Saudi purchasing power in CNY).

So Saudis are being paid in a mix of CNY and gold.

Presumably any country that exports goods to Saudi in large quantities could get the same deal.